Real estate developer RMZ Corp is planning to venture into three new asset classes as part of its vision to develop 350 million square feet of commercial space in India and abroad by 2032, according to top officials.
“Apart from commercial space, we are getting into industrial and warehousing (logistics), hospitality and data centres. We are in the midst of acquiring lands in six cities,” said Thirumal Govindraj, Senior MD, in an interview with The Hindu.
According to him, industrial and warehousing will be the first asset class to be rolled out by the realtor, followed by hospitality and data centres in Bengaluru, Chennai, Hyderabad, Mumbai, Pune and NCR.
“We might start building hotels. We are waiting for the right opportunity and are scouting for properties. It might take some time,” he said.
Talking about the vision 2032, the leading property developer said it would take about eight years to achieve the vision right from the stage of acquiring the land or identifying the right partner to developing commercial space.
Stating that they had already developed more than 67 million sq. ft of real estate in 20 years in four cities, he said that another 32 million sq. ft of space was under construction during the current year, marking their entry into Mumbai and NCR.
Mr. Govindraj said that their main focus would be on developing commercial office space in these six cities rather than selling parcels of land after developing them or getting into residential space.
FY24 will see the development of 5 million sq. ft space in Hyderabad, followed by 3.3 million sq. ft. in Bengaluru, 1 million sq. ft. each in Chennai and Pune. In Mumbai, it would take at least 36 months to develop 1.5 million sq.ft., he added
Fund raising plans
On fund raising plans, he said that the zero-debt company had raised $2 billion by selling a portion of its assets to Brookfield Asset Management Company, while Canada Pension Plan Investment Board will invest as and when needed.
Regarding plans to set up offices in Europe and U.S., K. Jayakumar, Senior MD said that they recently conducted a recce in London, Paris and New York regarding the market conditions and finding a local partner, among other things.
“As Europe is reeling under recession, we have put our move under pause and are watching the situation,” he said.